US firm Belkin has entered into an agreement to acquire Cisco’s Home Networking business unit, including its products, technology, well-known Linksys brand and employees.
Belkin intends to maintain the Linksys brand and will offer support for Linksys products as part of this transaction. All valid warranties will be honoured by Belkin for current and future Linksys products. After the transaction closes, Belkin will account for approximately 30 percent of the US retail home and small business networking market.
Belkin and Cisco intend to develop a strategic relationship on a variety of initiatives including retail distribution, strategic marketing and products for the service provider market. Merging the innovation capabilities of Linksys and Belkin is expected to bring new innovations in home networking technology.
“We’re very excited about this announcement,” said Chet Pipkin, CEO of Belkin. “Our two organisations share many core beliefs – we have similar beginnings and share a passion for meeting the real needs of our customers through the strengths of an entrepreneurial culture. Belkin’s ultimate goal is to be the global leader in the connected home and wireless networking space and this acquisition is an important step to realising that vision.”
“Belkin also will have access to a large installed base that will be able to upgrade their networking environment to take advantage of new technologies in the smartphone, tablet, notebook and home automation arenas. Additionally, Linksys will enhance Belkin’s capabilities to meet the needs of the service provider space and small business users.”
Specific financial terms of the transaction were not disclosed. The transaction is subject to various standard closing conditions and is expected to close in March 2013.